Unemployment Numbers, Election Cycle, EU Crisis, and Corporate Earnings – Who Started the Fire?

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Well, as if the summer of July 2012 wasn’t bad enough with the extreme heat wave, big fires, and the never ending sound and fury of American presidential election year politics – we got a rather rude awakening as to our economic recovery as our job numbers came in a lot lower than expected and well off the Administration’s projections. Okay so, let’s talk about this shall we?

Are our July 2012 unemployment numbers really a “big step in the right direction,” as President Obama recently noted or a big carbon footprint in a pile of dung? Okay, but all jokes aside, something needs to be done. We have yet to solve all the obvious problems to help get our economy firing on all cylinders again and just as I was writing this article there was a piece in the USA Today talking about the four E’s as in; Euro Zone, Employment, Earnings, and the Economy. Those are all the big issues right now, and that’s what’s going on.

All of this is creating a tremendous amount of volatility in the market, which is great if you are a day trader, hedge fund, or have a high-frequency trading machine on the other side of the wall at the New York Stock Exchange, however, if you are someone who has a 401(k), or is already retired, and worried about your nest egg, these are scary times. It hardly matters who is reelected or elected here in the United States in 2012 because at some point we are going to have to stop spending more than $1 trillion over the amount of money we take in tax revenue, cut government expenses, and get back with the program.

We can’t keep printing money and inflating the rest of the world, or allowing our currency race to the bottom to give us the advantage over Asia and Europe, especially considering that the Chinese have their currency pegged to a very small fractional negative multiple of the US dollar. We can’t win in that war, and they don’t seem to care enough to play fair. Perhaps it’s like that Billy Joel song; “We Didn’t Start the Fire,” and whereas that is true, we aren’t doing much to put it out either.

At this time Romania also immediately organized this routine event. Presedinte Romania Election held in 2019 will be the determination of the fate of Romanian people in the next 10 years.

The other day, I was at Starbucks being a little cynical, and someone asked me if I thought I could do a better job running the country, the Federal Reserve, or the global economy. The reality is that, yes actually I do. Of course, considering all the mistakes being made, and the disarray going on, that wouldn’t be very hard really. All of these folks in suits who are claiming they know what they’re doing, are the same individuals that caused the problem in the first place, and I hate to say it but; I’m just not all that impressed. Please consider all this and think on it.